Royal Philippine company

Opposition to tobacco monopoly.

The process of converting the consumption of tobacco into a monopoly met with a most obstinate resistance on the part of the inhabitants, and the greatest circumspection and constancy were necessary for the governor, Don José Basco, to carry this arduous enterprise into effect.

Accustomed to the cultivation of this plant without any restriction whatever, and habituated to its use from their infancy, it appeared to the people the extreme of rashness to seek simultaneously to extirpate it from the face of the greatest part of the Island of Luzon, in order to confine its culture within the narrow limits of a particular district.

They were equally revolted at the idea of giving to a common article a high and arbitrary value, when, besides, it had become one of the first necessity. Every circumstance, however, being dispassionately considered, and the principle once admitted that it was expedient for the colony to maintain itself by means the least burdensome to the inhabitants, it certainly must be acknowledged that, although odious on account of its novelty and defective in the mode of its execution, a resource more productive and at the same time less injurious, could not have been devised. Hence was it that the partisans of the opposite system were strangely misled, by founding their calculation on false [395]data, when they alleged that a substitute, equivalent to the increased revenue supposed to arise out of the monopoly of tobacco, might have been resorted to by ordering a proportionate rise in the branch of tributes.

In fact, no one who had the least experience in matters of this kind, can be ignorant of the open repugnance the natives have always evinced to the payment of the ordinary head-tax (cedula), and the broils to which its collection has given rise.

Besides, if well examined, no theory is more defective and more oppressive on account of the disparity with which it operates, than this same wrongly-boasted impost; for, however desirous it may be to simplify the method of collecting the general revenue of a state, if the best plan is to be adopted, that is, if public burdens are to be rendered the least obnoxious, it is necessary preferably to embrace the system of indirect contribution, in which class, to a certain degree, the monopoly of all those articles may be considered as included which are not rigorously of the first necessity, and only compel the individual to contribute when his own will induce him to become a consumer.

Doubling of insular revenue thru tobacco.Let this be as it may, certain it is, that to Governor Basco we are indebted for having doubled the annual amount of the revenue of these Islands, by merely rendering the consumption of tobacco subservient to the wants of the crown. It was he who placed these Islands in the comfortable situation of being able to subsist without being dependent on external supplies of money to meet the exigencies of government.

It ought, however, to be remarked that, although they have been in the habit of receiving the annual allowance of $250,000 for which a standing credit was opened by the government at home on the general treasury of New Spain, considerable sums have, nevertheless, on various occasions, been remitted from the Philippines to Spain, through the channel of the Captain-General. * * * If these remittances have been suspended for some years past, it has evidently been owing to the imperious necessity of applying the ordinary proceeds of the revenue, as well as other extraordinary means, to unforeseen contingencies arising out of peculiar circumstances.

Tobacco belt.

The planting and cultivation of tobacco are now confined to the district of Gapan, in Pampanga Province, to that of Cagayan, and to the small Island of Marinduque. The amount of the crops raised in the above three points and sold to the king, may, on an average, be estimated at fifty thousand bales, grown in the following proportion: Gapan, forty-seven thousand bales; Cagayan, two thousand, and Marinduque, one thousand. This stock, resold at [396]the monopoly prices, yields a sum equal to about one million of dollars, and deducting therefrom the prime cost and all other expenses, legally chargeable on this branch, the net proceeds in favor of the revenue amount to $550,000 or upwards of 122%.

This profit is so much more secure, as it rests on the positive fact that, however great the quantity of the article sold furtively and by evading the vigilance of the guards, as the demand and consumption are excessive and always exceed the stock on hand, a ready sale cannot fail to be had for all the stock placed in the hands of the agents of the monopoly. From this it may also be inferred how much the net proceeds of this branch would be increased, if without venturing too far in extending the plantations and consequent purchases, care was taken to render the supplies more proportionate to the consumption; for, by a clear profit of one hundred twenty-two per cent, falling on a larger capital, it follows that a corresponding result would be obtained. In a word, the sales, far from declining or being in any way deemed precarious, are susceptible of a great increase, consequently this branch of revenue merits the serious attention of government beyond all others.

Defective sales system.

Instead of every facility being given to the sale of tobacco and the consumption thus encouraged, the public meet with great difficulties and experience such frequent obstacles and deficiencies in the supplies, that with truth it may also be said, the sales are affected in spite of the administrators themselves.

In the capital alone it is a generally received opinion that a third part more would there be consumed, if, instead of compelling the purchaser to receive the tobacco already manufactured or folded, he was allowed to take it from the stores in its primitive state; and if the minor establishments in the provinces were constantly supplied with good qualities, an infinitely larger quantity might be sold, and by this means a great deal of smuggling also prevented. Such, however, is the neglect and irregularity in this department, that it frequently happens in towns somewhat distant from Manila, no other tobacco is to be met with than what the smugglers sell, and if, perchance, any is to be found in the monopoly stores, it is usually of the worst quality that can be imagined.

Loss from preventable causes.I pass over, in silence, the other defects gradually introduced, as evils, in a greater or lesser degree, inseparable from this part of public administration in every country in which it has been deemed necessary to establish monopolies; but I cannot refrain from again insisting on the urgency with which those in power ought to devote themselves, firmly and diligently, to the destruction of abuses which [397]have hitherto paralyzed the progress of the branch in question, because I am well persuaded, that, whenever corresponding means are adopted, it will be possible in a short time to double the proceeds. What these means are, it is not easy, nor indeed essential, to particularize in a rapid sketch, like this, of the leading features and present state of the Philippine Islands. I shall, therefore, merely remark, that it will be in vain to wish the persons engaged in the management of this department to exert their real zeal and sincerely co-operate in the views of government, as long as they are not placed beyond the necessity of following other pursuits and gaining a livelihood in another way; in a word, unless they have a salary assigned them, corresponding to the confidence and value of the important object entrusted to their charge, no plan of reform can be rendered efficient.

Abuses by revenue officers.At the same time steps are taken to augment the revenue arising out of tobacco, it would be desirable, as much as possible, to improve the methods used with regard to those who gather in the crops, by endeavoring to relieve them from the heavy conditions imposed upon them; conditions which, besides exposing them to the odious effects of revenue-laws, by their very nature bring upon them many unpleasant consequences, and often total ruin. In order that a correct opinion may be formed of these defects, it will suffice to observe that, under pretext of preventing smuggling, the guards and their agents watch, visit, and, if I may use the expression, live among the plantations from the moment the tobacco-seedlings appear above ground, till the crops are gathered in. After compelling the Filipino planter to cut off the head of the stem, in order that the plant may not become too luxurious, the surveyors then proceed to set down, not only the number of plants cultivated on each estate, but even the very leaves of each, distinguishing their six qualities, in order to call the farmers to account, respectively, when they make a defective delivery into the general stores. In the latter case, they are compelled to prove the death of the plants and even to account for the leaves missing when counted over again, under the penalty of being exposed to the rigor of the revenue laws.

Burdensome and unprofitable inspection.It cannot indeed be denied that by this means two important objects are attained, at one and the same time; the one, the gradual improvement of the tobacco, and the other, the greater difficulty of secreting the article; but, on the other hand, how great are the inconveniences incurred? Independent of the singularity and consequent oppression of a regulation of this kind, as well as its too great minuteness and complication, it is attended with very considerable [398]expenses, and renders it necessary to keep on foot a whole army of guards and clerks, who tyrannize over and harass the people without any real motive for such great scrupulosity and profusion. I make this observation because I cannot help thinking that the same results might nearly be obtained, by adopting a more simple and better regulated system. I am not exactly aware of the one followed in the Island of Cuba, but as far as I understand the matter, it is simply reduced to this: the growers there merely present their bales to the inspectors, and if pronounced to be sound and good, the stipulated amount is paid over to them; but if the quality is bad, the whole is invariably burnt. Thus all sales detrimental to the public revenue are prevented, and I do not see why the same steps could not be taken in the Philippine Islands. It must not, however, be understood, that I presume to speak in a decisive tone on a subject so extremely delicate, and that requires great practical information, which, I readily acknowledge, I do not possess. I merely wish by means of these slight hints, to contribute to the commencement of a reform in abuses, and to promote the adoption of a plan that may have for basis the relief of the growers, and at the same time advance the prosperity of this part of the royal revenue.

Coco and nipa wine monopoly.The monopoly of coco and nipa, or palm-wine, is a branch of public revenue of sufficient magnitude to merit the second place among the resources rendered available to the expenditure of these Islands, converted into a monopoly some years ago. In like manner as the consumption of tobacco, it has experienced several changes in its plan of administration, this being at one time carried on, for account of the king, at others, by the privilege being let out at auction; till at length the Board of Control, convinced of the great profit gained by the contractors, resolved at once to take the direction of this departure under their own charge, and make arrangement for its better administration. Having with this view established general deposits and licensed houses for the sale of native wine, with proper superintending clerks they soon began to reap the fruits of so judicious a determination. In 1780, the privilege of selling the coco and nipa wine was farmed out, to the highest bidder, for no more than $45,200 and subsequently the increase has been so great, owing to the improvements adopted, that at present net proceeds equal to $200,000 on an average may be relied upon. In proof of this, the proceeds of this branch, in the year 1809, may be quoted, when the total balances received at the Treasury, after all expenses had been paid, amounted to $221,426, in the following manner:

Administration of Manila and district $201,250 Administration of La Pampanga and district 12,294 Administration of Pangasinan and district 7,882 —— $221,426 [399]The prime cost and other expenses that year amounted to no more than $168,557 by which means, on the whole operation, a net profit of thirteen and one-half per cent. resulted in favor of the treasury.